Boost for Rajoy?

The vote on June 26 follows an inconclusive December election that stripped Rajoy’s centre-right People’s Party (PP) of its absolute majority.

Opinions polls show there could be another political stalemate, forcing parties to once again try to form a coalition.

Spain’s dysfunctional labour market played a major role in December’s political upset, as the vote was fragmented by support for upstart parties advocating stronger workers’ rights or an overhaul of job contracts.

‘The only issue’

Surveys of voters show the PP will still come in first place but again well below a parliamentary majority.

Around a quarter of voters made up their minds in the very last days of December’s campaign, meaning the undecided could still be swayed at the last minute.

“If the campaign is important, then these (job) numbers are important, especially for the PP as it’s the only issue they can campaign on,” said Teneo Intelligence analyst Antonio Barroso.

The anti-austerity party Podemos – which translates as ‘We Can’ – has now teamed up with a smaller left-wing force.

They are expected to place second or third thanks to strong backing from millions of Spaniards who have yet to benefit from the gradual economic recovery.